Exhibit 99.1
WASTE INDUSTRIES USA, INC. Reports First Quarter 2003 Results
Raleigh, NC, Wednesday, April 30, 2003 -- Waste Industries USA, Inc. (NASDAQ:
WWIN), formerly known as Waste Holdings, Inc., a regional, non-hazardous solid
waste services company, today reported financial results for the first quarter
ended March 31, 2003.
For the quarter ended March 31, 2003, the Company reported revenue of $62.9
million compared to $60.0 million for the quarter ended March 31, 2002.
Operating income was $5.8 million compared to $6.4 million for the comparable
period last year. Income before a cumulative effect of a change in accounting
principle for SFAS 143 was $2.2 million, or $0.16 per share (including the $0.01
per share dilutive impact for the adoption of SFAS 143) and $2.3 million, or
$0.17 per share for the quarters ended March 31, 2003 and 2002, respectively.
Net income was $1.1 million, or $0.08 per share for the quarter ended March 31,
2003 (including the $0.08 per share dilutive impact for the cumulative effect of
the adoption of SFAS 143) compared to $2.3 million, or $0.17 per share for the
quarter ended March 31, 2002. The cumulative effect of the change in accounting
principle was related to the Company's adoption, effective January 1, 2003, of
Statement of Financial Accounting Standards No. 143, Accounting for Asset
Retirement Obligations ("SFAS 143").
Commenting on the Company's performance, Jim W. Perry, President and CEO of
Waste Industries USA said, "We are pleased with our 1/st/ quarter performance in
view of increased fuel cost, continued weakness in the economy and severe winter
conditions."
The following items negatively impacted results for the quarter ended March 31,
2003 compared to the same period in 2002:
. Increased fuel costs, net of surcharges, of approximately $200,000
($127,000 net of tax, or $0.01 per share);
. Severe winter weather impact of approximately $180,000 ($114,000 net of
tax, or $0.01 per share) and
. Increased costs of approximately $174,000 ($110,000 net of tax, or$0.01
per share) related to the implementation of SFAS 143.
For the first quarter ended March 31, 2003, the Company implemented SFAS 143,
which changed the method of accounting for the Company's asset retirement
obligations related to its landfills. As a result, on a year to year comparison,
operating costs were $246,000 lower and depreciation and amortization costs were
$420,000 higher than they would have been had the accounting standards been the
same as for the comparable period in 2002.
The Company will host a conference call to discuss its first quarter results on
Wednesday, April 30, 2003 at 2:00 PM (EST). The call number is (888) 515-2235
and the confirmation number is 423348. The conference call will also be
broadcast live over the Internet at http://www.waste-ind.com under the "Investor
Relations" tab.
Waste Industries USA, Inc. is a vertically integrated solid waste services
company that provides collection, transfer, disposal and recycling services to
commercial, industrial and residential customer locations in the states of North
Carolina, South Carolina, Virginia, Tennessee, Mississippi, Alabama, Georgia and
Florida.
This release contains references to EBITDA and free cash flow, which are
considered non-GAAP financial measures. Tables reconciling EBITDA and free cash
flow to the appropriate GAAP measures for each period presented are included in
the attached supplemental data. The Company defines EBITDA as income before
income taxes plus interest expense (net of interest income), depreciation and
amortization and cumulative effect of change in accounting principle. The
Company defines free cash flow as cash flows from operating activities plus
capital expenditures. EBITDA and free cash flow do not represent, and should not
be considered as, an alternative to net income or cash flows from operating,
investing and financing activities, each as determined in accordance with GAAP.
The Company has included information concerning EBITDA and free cash flow
because it believes that EBITDA and free cash flow provide additional
information for determining its ability to meet debt service requirements and
that they are two indicators upon which the Company, its lenders and certain
investors assess its financial performance and its capacity to service debt. The
Company therefore interprets the trends that EBITDA and free cash flow depict as
measures of its liquidity. EBITDA and free cash flow, both as defined by the
Company, may not be comparable to similarly titled financial measures reported
by other companies.
This press release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because the statement will include words such as
the Company "believes," "anticipates," "expects" or words of similar import.
Similarly, statements that describe the Company's future plans, objectives or
goals are also forward-looking statements. Forward-looking statements are
subject to risks and uncertainties, such as economic trends, risks in the
development and operation of landfills, managing growth and weather conditions,
that could cause actual results to differ materially from those currently
anticipated. Consider these factors carefully
in evaluating the forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from those in the
forward-looking statements is contained from time to time in the Company's SEC
filings. The forward-looking statements made herein are only made as of the date
of this press release and the Company undertakes no obligation to publicly
update such forward-looking statements.
WASTE INDUSTRIES USA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
----------------------
2002 2003
----------------------
Revenues:
Service $ 59,615 $ 62,486
Equipment 362 447
----------------------
Total revenues 59,977 62,933
Operating costs and expenses:
Operations 38,076 40,241
Equipment sales 225 282
Selling, general and administrative 8,492 9,061
Depreciation and amortization 6,741 7,508
----------------------
Total operating costs and expenses 53,534 57,092
----------------------
Operating income 6,443 5,841
----------------------
Interest expense (net) 2,743 2,458
Other expense (income) 44 (15)
----------------------
Total other expense 2,787 2,443
----------------------
Income before income taxes and cumulative effect of a change in
accounting principle 3,656 3,398
Income tax expense 1,335 1,240
----------------------
Income before cumulative effect of a change in
accounting principle 2,321 2,158
Cumulative effect of a change in accounting principle, net of tax
expense of $614 - (1,067)
----------------------
Net Income $ 2,321 $ 1,091
======================
Basic and Diluted Earnings per share:
Income before cumulative effect of a change in accounting principle $ 0.17 $ 0.16
Cumulative effect of a change in accounting principle - (0.08)
----------------------
Net income per share $ 0.17 $ 0.08
----------------------
Weighted average common shares outstanding:
Basic 13,334 13,405
Diluted 13,339 13,418
EBITDA $ 13,140 $ 13,364
Net cash provided by operating activities $ 8,168 $ 10,033
WASTE INDUSTRIES USA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
December 31, March 31,
2002 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,734 $ 2,374
Accounts receivable - trade, less allowance for
uncollectible accounts (2002 - $2,237; 2003 - $2,396) 28,200 29,187
Accounts receivable - other 1,395 487
Income taxes receivable 919 -
Inventories 1,552 1,516
Prepaid expenses and other current assets 3,860 5,791
Deferred income taxes 759 757
------------ ------------
Total current assets 38,419 40,112
------------ ------------
Property and equipment, net 188,897 187,109
Intangible assets, net 68,338 71,940
Other noncurrent assets 2,854 2,717
------------ ------------
Total assets $ 298,508 $ 301,878
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 11,710 $ 10,731
Current maturities of capital lease obligations 599 475
Accounts payable - trade 10,501 10,226
Income taxes payable - 82
Accrued expenses and other liabilities 9,822 11,997
Deferred revenue 1,997 2,618
------------ ------------
Total current liabilities 34,629 36,129
------------ ------------
Long-term debt, net of current maturities 140,875 142,303
Deferred income taxes 18,941 18,347
Closure/postclosure liabilities 4,874 4,309
Interest rate swap 2,219 2,147
Commitments and contingencies - -
Shareholders' equity:
Common stock, no par value, shares authorized -
80,000,000 shares issued and outstanding:
2002 - 13,338,005; 2003 - 13,438,657 38,116 38,658
Paid-in capital 7,245 7,245
Retained earnings 54,623 55,714
Accumulated other comprehensive loss (1,366) (1,326)
Shareholders' loans and other receivables (1,648) (1,648)
------------ ------------
Total shareholders' equity 96,970 98,643
------------ ------------
Total liabilities and shareholders' equity $ 298,508 $ 301,878
============ ============
EARNINGS RELEASE - SUPPLEMENTAL DATA
- ------------------------------------
TOTAL REVENUE MARGINS 1Q 02 1 Q 03
- --------------------- ----- ------
Total Cost of operations 63.9% 64.4%
S G & A 14.2% 14.4%
Depreciation and amortization 11.2% 11.9%
Interest expense (net) 4.6% 3.9%
Income before income taxes and cumulative
effect of a change in accounting principle 6.1% 5.4%
Income tax expense 2.2% 2.0%
Income before cumulative effect of a change
in accounting principle 3.9% 3.4%
Cumulative effect of a change in accounting
principle 0.0% -1.7%
Net income 3.9% 1.7%
EBITDA 21.9% 21.2%
EBITDA CALCULATION 1Q 02 1 Q 03
- ------------------ ----- ------
Net income $ 2,321 $ 1,091
Add back:
Income tax expense 1,335 1,240
Interest expense (net) 2,743 2,458
Depreciation and amortization 6,741 7,508
Cumulative effect of a change in
accounting principle - 1,067
-------- --------
$ 13,140 $ 13,364
======== ========
RECONCILIATION OF EBITDA
- ------------------------
EBITDA $ 13,140 $ 13,364
Income tax expense (1,335) (1,240)
Interest expense (net) (2,743) (2,458)
Adjustments to reconcile net income
to net cash provided by operating
activities (other than depreciation and
amortization)
(Gain) loss on sale of PP&E (10) 11
Provision for deferred income taxes 170 (10)
Changes in operating assets and liabilities (1,054) 366
-------- --------
Net cash provided by operating activities $ 8,168 $ 10,033
======== ========
FREE CASH FLOW AND RECONCILIATION OF FREE CASH FLOW
- ---------------------------------------------------
TO NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES
- ----------------------------------------------------------
Net cash provided by operating activities $ 8,168 $ 10,033
Capex (3,956) (6,522)
-------- --------
Free cash flow 4,212 3,511
Proceeds from sale of property and equipment 185 882
Acquisitions of business - (4,090)
-------- --------
Net cash provided by operating and
investing activities $ 4,397 $ 303
======== ========
CAPEX DETAIL 1Q 02 1 Q 03
- ------------ ----- ------
Collection & Transportation $ 3,257 $ 5,439
Landfill & Facility Development 699 1,083
-------- --------
Total Capex $ 3,956 $ 6,522
======== ========
AS OF
12/31/02 3/31/03
-------- -------
TOTAL DEBT & CAPITAL LEASES $153,184 $153,509
- ---------------------------
TOTAL EQUITY $ 96,970 $ 98,643
- ------------
TOTAL DEBT TO TOTAL CAP 61.2% 60.9%
- -----------------------
TOTAL LIABILITIES TO EQUITY 2.08 2.06
- ---------------------------
WORKING CAPITAL $ 3,790 $ 3,983
- ---------------
DAYS SALES OUTSTANDING 37.5 36.8
- ----------------------
CASH $ 1,734 $ 2,374
- ----